Safari Industries (India) Reports Mixed Financial Performance for Q3 2024

Safari Industries (India), a midcap company in the plastic products industry, recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

The company's financial performance for the quarter was flat, with a score of -3 compared to 5 in the previous quarter. However, there are some positive aspects to note from the financials. Safari Industries has shown a consistent growth in its operating cash flow, with the highest amount of Rs 216.92 crore in the last three years. The company has also seen a positive trend in its net sales, with the highest amount of Rs 457.79 crore in the last five quarters. Additionally, the company's short-term liquidity has improved, with the highest amount of Rs 279.40 crore in the last six half-yearly periods. This is reflected in the highest dividend payout ratio of 11.09% in the last five years, indicating that the company is distributing a higher proportion of its profits as dividends.

However, there are also some areas of concern in the financials. The company's profit before tax less other income (PBT) for the quarter has fallen by 39.0% compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) has also fallen by 30.3% compared to the average of the previous four quarters. The operating profit (PBDIT) for the quarter is also the lowest in the last five quarters, indicating a negative trend. The company's operating profit margin has also decreased to its lowest at 10.46% in the last five quarters, showing a decline in efficiency. Furthermore, the earnings per share (EPS) for the quarter is also the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Overall, Safari Industries (India) has shown a mixed financial performance for the quarter ending September 2024. While there are some positive aspects to note, there are also areas of concern that the company needs to address in order to improve its financial performance. Investors are advised to hold their position in the stock and monitor the company's future financial results.